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S&V Weekly Newsletter Vol.8 No.21, May 23 2022

Please note: Click on any ad to go to the advertiser’s website

 

Retail

DMF still in business rescue

Johannesburg, Gauteng, SA – The 10-store Discount My Fashion (Pty) Ltd mini-chain, trading as DMF, remains in business rescue, business rescue practitioner Louis Klopper confirmed on Friday. DMF, which imports branded footwear distressed stock, went into business rescue in January 2021.
      "The first tranche payments were made in terms of the adopted plan," he wrote. "However, business rescue proceedings will continue until all litigation is complete, whereafter the practitioner, after consulting with the board, may consider a further distribution to concurrent creditors, depending on the outcome of said litigation."
      Of DMF's debts, he wrote: "Figures are being calculated for purposes of our claims and being finalised." There was "no timeline" to the process.
      David Fine remains the shareholder and director.

 

US consumers 'switching to services from big ticket goods'

On 18 May, Bloomberg Opinion reported that US consumers "have abruptly stopped buying sofas and TVs for their pandemic dungeons and are now buying plane tickets and restaurant meals instead" - resulting a drop in sales for chains Target and Walmart, and whch "suffered their worst trading days since 1987, as everything that had been going right for the big-box retailers in the past couple of years has slammed into reverse all at once".
      Ironically, both retailers had "triumphed over supply-chain and labour headaches to stock their shelves with merch, only to see demand fall into a ravine".
      "Meanwhile, their costs are jumping, squeezing profit margins (though only from “robust” to “healthy”)...Target is already discounting stuff to get it out the door.
      On 19 May, it reported: "US consumers are shifting their spending from merchandise to services, a worrying trend for retailers that spent the past two years profiting from a pandemic spending binge. And while the development may be a promising sign for snarled supply chains and inflation, on Wednesday Wall Street was focused on the more immediate damage being wrought by higher costs. US stocks posted their biggest daily drop in almost two years, sending the S&P 500 down 4%, with a plunge in consumer shares surpassing 6%. Target Corp. plummeted more than 20% in its worst rout since 1987 after cutting its profit forecast. Walmart and Macy’s were sucked into the vortex as well. “Disappointing quarterly numbers from retail giants Target and Lowe’s are striking fear into the market,” says Fiona Cincotta at City Index. “The data yesterday suggests that consumers are weathering the inflation hit for now. Retailers, however, are not doing so well at navigating through soaring input costs.”

 

Wage negotiations

General Goods settles, another round for Footwear

Durban, KZN, SA – Gerald Naidoo, general secretary of the National Bargaining Council of the Leather Industry of SA, said on Friday that in the General Goods and Handbag sector, SACTWU had accepted the 7,25% offer by employers, which had already been accepted by NULAW.
      "In Footwear, it can be reported that the second round of wages went on better than expected. The employers tabled an offer on wage increase which the unions were unable to accept as they had no mandate to accept. There will be a 3rd round of negotiations scheduled for 14 & 15 June, where the 14th will be used to continue with negotiations and if no agreement is reached, then the 15th will be used for conciliation by a CCMA commissioner. Notwithstanding the formal process, the parties undertake to meet outside the ambit of the bargaining council in an endeavour to narrow down issues or reach agreement."

 

In case you missed it!

The May issue of S&V Footwear & Leather Goods Magazine

S&V FOOTWEAR & LEATHER GOODS MAGAZINE VOL88 NO5 May 2022

 

IN THIS ISSUE:

03 Upfront
- The supply sector: Ominous silence.

03 Sector Reports
- Fashion: New Dakotas owner Supreme Hat & Cap ties up with designer Wanda Lephoto and retailer Shelflife to launch a mule variation of its hi-shine leather loafers.
- Fashion: Importer Footwear Focus has opened an assembly plant, and it's doing big numbers, says Angie Wallis.
- Fashion: STADIO School of Fashion ties up with H&M and Mr. Slimfit.
07 The U.S. Market
- NPD: Q1 sales results suggest shifts for the US footwear industry.

09 Components
- Zinc die cast trims manufacturer Topline Manufacturers: Surviving and thriving, come what may.

11 Foot Health
- Study shows that local school shoes are unsuitable for children who have grown up mostly barefoot.

12 Sustainability
- SGS launches Light Sensitive Fabric Test to boost greener production of denim fashion products.

13 Notice Board
- Obituary: Hans Beier - Celebrating the life of an industrial pioneer.
- Obituary: Walter Kurth - The exotic leather goods pioneer who came home.

16 Knowledge Transfer, Education & Training
- Leather: An introduction - The first in a 4-part series by Richard Daniels for people with little or no knowledge about leather.



Advertisers in this Issue
BBF Safety Group (OFC, 2), Freestyle Genuine Handcrafted Leather (04), Italtan (11), JFK Trading/Jack Parcels (13), S&V Calendar (below), S&V Directory (14), SAFLEC (12), Saddler Belts (07).

CLICK HERE TO VIEW IT ONLINE

 

 

Stock Exchange News Service (SENS)

TFG - trading update and further trading statement

2021 4th quarter 24% up on 2020

To read the full release, click here
Cape Town, W. Cape, SA (Fri 20 May 2022, 9:39) – Overall, the Group delivered a robust performance during Q4 FY2022 with Group retail turnover growth of 23.7% compared to the same period in the previous financial year with all divisions reporting high double-digit growths. Group cash retail turnover for Q4 FY2022 grew by 26.9%, contributing 81.7% to total retail turnover for the three-month period. Group credit retail turnover grew by 11.3% during Q4 FY2022 when compared to the same quarter in the previous financial year. Online retail turnover for the Group grew by 12.1% (TFG Africa: 13,5%) for Q4 FY2022 compared to the same period in the previous financial year.

Company outlook: The Group will continue to invest in its key strategic initiatives to further strengthen its differentiated business model, which has proven to be resilient and has consistently delivered superior growth in all its operating territories. Further, the Group made progress on its key strategic objectives and its speciality brand business portfolio which remains very well positioned for further organic and inorganic growth, supported by a strong Group balance sheet.
      Operationally, in light of the current macroeconomic conditions, there will be a continued focus on further improving gross profit margins, expense control, working capital management and disciplined capital allocation.
      Trade since the year-end has been encouraging across all three of our trading territories. For the trading month of April 2022, TFG Africa had retail turnover growth of 17.1%, TFG London had growth of 62.3% (GBP) and TFG Australia had growth of 10.9% (AUD), all compared to April 2021.

Annual financial results: Shareholders are advised that the Group expects to release its annual financial results for the 12 months ended 31 March 2022 on SENS on Friday, 10 June 2022.
      A live webcast of the annual financial results presentation will be broadcast at 10:00 am (SAS) on Friday, 10 June 2022.

 

Richemont final results February 2022

Sales up 44%, profit more than doubles

To read the full release, click here
Geneva, Switzerland (Fri 20 May 2022, 7:42) – Revenue for the year jumped to EUR19.2 billion (2021: EUR13.1 billion) and operating profit grew to EUR3.4 billion (2021: EUR1.5 billion). Profit attributable to owners rose to EUR2.1 billion (2021: EUR1.3 billion). In addition, headline earnings per share increased to EUR376.2 cents per share (2021: EUR232.8 cents per share).

Chairman's outlook: As I conclude my comments, I would like to convey our deepest sympathy and compassion to all those affected by the tragic conflict taking place in Ukraine. Richemont and its Maisons have made significant donations to Médecins Sans Frontières to support its relief efforts.
      We remain in close contact with our colleagues in Ukraine and Russia, where we have suspended our operations. Their safety and wellbeing are our highest priority.
      Even if the worst of Covid is hopefully behind us, we face a global environment which is the most unsettled we have experienced for a number of years. We can, however, take comfort from the strength and enduring appeal of our Maisons as well as their relatively balanced geographic spread. Richemont’s EUR5.3 billion net cash position at the end of March 2022 is a source of strength as we face volatile times ahead. I am confident that the Group is well positioned to benefit from any strength in consumer demand. We will work to maintain the necessary agility and flexibility to manage global uncertainties.
      Finally, I would like to thank all our colleagues across the Group for their contribution to the excellent performance delivered with solidarity, empathy, creativity, agility and responsibility. We have seen all our businesses improve and made major strides in our sustainability agenda. We consider ourselves custodians of Richemont’s underlying businesses and the planet for future generations. As such, I would like to reiterate how important it is for us to build brand equity over time, and to do it in a responsible manner.

 

Sustainability

SGS webinar on fibre fragmentation in the fashion industry

Geneva, Switzerland – Fibre fragmentation, which causes the unintentional release of microplastics from textiles into the environment, is one of the major pollution issues facing the fashion and textile industry, says global testing, inspection and certification company SGS.
      It is inviting quality and regulatory compliance professionals to a webinar: Fibre Fragmentation in the Fashion and Textile Industry, on 16 June.
      "This is an issue being addressed by manufacturers, retailers, NGOs and regulatory authorities," it said in a release." It is also high on the agenda for the modern consumer who wishes to purchase clothing products that are more sustainable and better for the environment.
      "The fashion industry has a huge environmental impact and therefore has a major role to play in fostering sustainability and environmental awareness."
      "In this one hour webinar, SGS expert Steve McDonald, Global Technical Manager, will discuss the major concerns, present an update on regulations and the Microfibre Consortium 2030 Commitment, and conclude with SGS’s services to help quality and regulatory professionals address this issue."
      Sign up now to reserve your place.
      Reserve your place

 

They Said It

"Thanks to good profits during 2002-2012, we all enjoy a cash flush retirement!!" - Marthus Louw, former Bolton Footwear MD, Great Brak River, W. Cape, SA.

"The razor blade is sharp but can't cut a tree; the axe is strong but can't cut hair. Everyone is important according to his/her own unique purpose...never look down on anyone unless you are admiring their shoes..." - Advice from Vision 2020: An inspiration for youth, shared by Glen Mitchell, Shoprite Checkers, Cape Town, W. Cape, SA.

 

Got anything you'd like to share?

Do you have any suggestions, comments or experiences about the industry that you'd like to share with the industry? - tony@svmag.co.za

 

23/05/1950: Dean Padayachee, retired, formerly Daylan Footwear (closed), Durban, KZN, SA.
23/05/1952: Martin Cohen, L. Cohen Outfitters, Cape Town, W. Cape, SA.
23/05/1965: Craig Harper, left the industry, formerly Wayne Rubber, Palmer Rubber and Egoli Gumboots (all closed), Amanzimtoti, KZN, SA.
24/05/1965: Wayne Stanford, agent, East London, E. Cape, SA.
24/05/1970: Carla Maritz, Mott! Shu’s, Pretoria, Gauteng, SA.
24/05/1972: Terry Fowler, BBF Safety Group, Cape Town, W. Cape, SA.
25/05/1961: Gerald Naidoo, National Bargaining Council, Durban, KZN, SA.
26/05/1951: Wessel Nolte, formerly Cedar Shoes & Accessories (closed), Bloemfontein, Free State, SA.
26/05/1966: Manoj Morar, Impressions, Vryheid, KZN, SA.
27/05/1944: Richard Bunyard, left the industry, formerly GW Cowie & Co, Durban, KZN, SA.
27/05/1969: Dean Tharman, Ten Digits, George, W. Cape, SA.
28/05/1958: Brigitte Davidow, Nakara, Windhoek, Namibia.
29/05/1964: Bevan Lamb, left the industry, formerly Waye Rubber, Palmer Rubber and Egoli Gumboots (all closed), Amanzimtoti, KZN, SA.
29/05/1966: Prakash Chapaner, KG Chapaner & Co, Gweru, Zimbabwe.
29/05/1980: Andrew Lang, Rolfes Chemicals, Germiston, Gauteng SA.
29/05/1987: Saahir Bhamjee, Sbzee Global Trading, Johannesburg, Gauteng, SA.

 

23/05/2012: Chris van der Merwe, Oasis Tanning, Krugersdorp, Gauteng, SA.
23/05/2020: Cyril Saxe (b. 02/10/1936), Lonshoe Holdings, Cape Town, W. Cape, SA.
24/05/2013: Casper Louw (b. 11/04/1944), Busy Bag (closed), Stanger, KZN, SA.
27/05/2002: Stan Austin (b. 28/11/1915), Austin Shoes (closed), Pietermaritzburg, KZN, SA.
28/05/2011: Charles Chavkin (b. 20/03/1930), Charles Chavkin Agencies, Johannesburg, Gauteng, SA.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

 

 

 

 

Exchange rates

Note: For previous rates, see HERE

1. SA Rand (ZAR)/Lesotho Loti (LSL)/Namibian Dollar (NAD)/Swazi Lilangeni (SZL)

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ CNY ¥
21/05/22 R16.71 R19.76 R15.82 R2.36
 


2. Botswana Pula (BWP)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
21/05/2022 12.89 15.25 12.21 1.82


3. Malawian Kwacha (MWK)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
21/05/2022 865.93 1024.15 819.86 122.49


4. Zambian Kwacha (ZMW)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ US $ CNY ¥
21/05/2022 18.10 21.41 17.14 2.56



5. Zimbabwean Dollar (ZWL$)

Source: https://www.xe.com/currencyconverter/

 
  Euro € GBP £ CNY ¥ Official US$
21/05/2022 382.23 452.07 54.07 291.11

 

 

 

 

ABSA Agri Trends: Hides & skins prices

Johannesburg, Gauteng, SA (19 May 2022) - The current average hide price decreased by 1.1% to R4.11/kg from R4.16/kg a week ago. The current price is 26.0% lower than the average price a month ago and is 45.0% lower than the average price a year ago. The range of prices reported was as follows: Minimum price: R4.00 Maximum price: R5.00. Please note: Our methodology weighs the prices we collect according to the number of hides they sell in a month. This is done to make it more representative of the prevailing market price. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. - Marlene Louw, senior agricultural economist, and Nkhensani Mashimbyi, agricultural economist, Absa group.

Note: For previous prices, see HERE

  

Directory entries updated last week

Derek Brown Agencies, Johannesburg, Gauteng, SA.
Florsheim SA, Johannesburg, Gauteng, SA.
Mossop Leather, Wellington, W. Cape, SA.
Superior PPE, Johannesburg, Gauteng, SA.

 

New subscribers last week

Milly, Leather + Linen, Eastern Cape, SA.
Moses Khumalo, Schindler Lifts SA, Gauteng, SA.
Mustapha Adam, Premier Clothing, Gaborone, Botswana.
Mohammed Adam, Premier Clothing, Gaborone, Botswana.
Muhammed Khan, Premier Clothing, Gaborone, Botswana.
Eben Delport, NULAW, Durban, KZN, SA.
Frederik Smit, NULAW, South West District, SA.

 

Have a look at these links

We invite businesses to send us links to websites, Facebook pages and the like which they feel would be of interest to others. The links below are from our database:
Hermers of Rosebank, Johannesburg, Gauteng, SA. Uniform retailer.
Heydenrych's General Dealer, Jansenville, E. Cape, SA. General dealer.

 


Classified Adverts




Shoe machinery for sale

Surplus shoe machinery for sale (new and used) . Contact cell/WhatsApp 0837863440  for further information.

 




SECOND HAND THICKNESS GUAGES FOR SALE

R750 each excl VAT.

Contact Clive Jackson-Moss
082 926 1023
(selling on behalf of someone else)

 




 

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: May 30, 2022.

SAFLIA enquiries: Tel 0800SAFLIA * Email info@saflia.co.za * Website http://www.saflia.co.za

Our website www.svmag.co.za

 

 

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